Permits wagering at casinos and racetracks on certain
professional and collegiate sports or athletic events.

CURRENT VERSION OF TEXT

As amended by the Senate on December 15, 2011.

An Actpermitting wagering at casinos and racetracks on
the results of certain professional or collegiate sports or athletic events,
supplementing Title 5 of the Revised Statutes, and amending P.L.1977, c.110 1[(C.5:12-1 et seq.)]and P.L.1992, c.191.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) As used
in this act:

"casino" means a
licensed casino or gambling house located in Atlantic City at which casino
gambling is conducted pursuant to the provisions of P.L.1977, c.110 (C.5:12-1
et seq.);

“Casino Control Commission”
means the commission established pursuant to section 50 of P.L.1977, c.110
(C.5:12-50);

“collegiate sport or athletic
event” means a sport or athletic event offered or sponsored by or played in
connection with a public or private institution that offers educational
services beyond the secondary level;

"division" means the
Division of Gaming Enforcement established pursuant to section 55 of P.L.1977,
c.110 (C.5:12-55);

"operator" means a
casino or a racetrack which has elected to operate a sports pool, either
independently or jointly;

“professional sport or
athletic event” means an event at which two or more persons participate in
sports or athletic events and receive compensation in excess of actual expenses
for their participation in such event;

"prohibited sports
event" means any collegiate sport or athletic event that takes place in
New Jersey or a sport or athletic event in which any New Jersey college team
participates regardless of where the event takes place;

"racetrack" means
the physical facility where a permit holder conducts a horse race meeting with
parimutuel wagering under a license by the racing commission pursuant to
P.L.1940, c.17 (C.5:5-22 et seq.) 1[, and includes the site
of any former racetrack]1
2, and includes the site of any former racetrack2 ;

"racing commission"
means the New Jersey Racing Commission established by section 1 of P.L.1940,
c.17 (C.5:5-22);

"sports event" means
any professional sport or athletic event and any collegiate sport or athletic
event, except a prohibited sports event;

"sports pool" means
the business of accepting wagers on any sports event by any system or method of
wagering 1[other than the
pari-mutuel method of wagering]1;
and

"sports wagering
lounge" means an area wherein a sports pool is operated.

2. (New section) a. In
addition to casino games permitted pursuant to the provisions of P.L.1977,
c.110 (C.5:12-1 et seq.), a casino may operate a sports pool upon the approval
of the 1[Casino Control Commission
and the]1
division 1[, in accordance with
their respective duties,]1
and in accordance with the provisions of this act and applicable regulations
promulgated pursuant to this act. In addition to the conduct of parimutuel
wagering on horse races under regulation by the racing commission pursuant to
chapter 5 of Title 5 of the Revised Statutes, a racetrack may operate a sports
pool upon the approval of the 1[Casino Control Commission
and the]1
division and the racing commission, and in accordance with the provisions of
this act and applicable regulations promulgated pursuant to this act. Upon
approval of the 1[Casino Control Commission
and the]division
and1
racing commission, a casino and a racetrack in this State may enter into an
agreement to jointly operate a sports pool at the racetrack, in accordance with
the provisions of this act and applicable regulations promulgated pursuant to
this act.

1[In addition to]With regard to this
act, P.L. , c. (C. )(pending before the Legislature as this bill),1 the duties
specified in section 63 of P.L.1977, c.110 (C.5:12-63)1[,]of1 the Casino Control
Commission shall 1[hear and decide promptly
and in reasonable order all applications for a license to operate a sports pool
and shall have all other duties specified in that section with regard to the
operation of a sports pool]apply to the extent not inconsistent with the provisions of this act1. In addition to
the duties specified in section 76 of P.L.1977, c.110 2[(C.5:12-76.1)](C.5:12-76)2 , the division
shall 1hear
and decide promptly and in reasonable order all applications for a license to
operate a sports pool, shall1
have the general responsibility for the implementation of this act and shall
have all other duties specified in that section with regard to the operation of
a sports pool.

1The license to
operate a sports pool shall be in addition to any other license required to be
issued pursuant to P.L.1977, c.110 (C.5:12-1 et seq.) to operate a casino or pursuant
to P.L.1940, c. 17 (C.5:5-22 et seq.) to conduct horse racing.2No license to
operate a sports pool shall be issued by the division to any entity unless it
has established its financial stability, integrity and responsibility and its
good character, honesty and integrity. No license to operate a sports pool
shall be issued by the division to any entity which is disqualified under the
criteria of section 86 of P.L.1977, c.110 (C.5:12-86).2

No later than five years
after the date of the issuance of a license and every five years thereafter or
within such lesser periods as the division may direct, a licensee shall submit
to the division such documentation or information as the division may by
regulation require, to demonstrate to the satisfaction of the director of the
division that the licensee continues to meet the requirements of the law and
regulations.1

b. A sports pool shall be
operated in a sports wagering lounge located at a casino or racetrack. 1A sports
wagering lounge may be located at a casino simulcasting facility.1 The lounge shall
conform to all requirements concerning square footage, design, equipment,
security measures and related matters which the division shall by regulation
prescribe. The space required for the establishment of a lounge shall not
reduce the space authorized for casino gaming activities as specified in
section 83 of P.L.1977, c.110 (C.5:12-83).

c. The operator of a
sports pool shall establish 1or
display1
the odds 1[it will pay on wagers
placed]at
which wagers may be placed1
on sports events.

d. An operator shall accept
wagers on sports events from persons physically present in the sports wagering
lounge 2[, or from persons not
physically present who wager by means of electronic devices]2 . A person
placing a wager shall be at least 21 years of age.

e. 2[An operator may also
accept wagers by means of the Internet from a resident of this State who is at
least 21 years of age and who is physically present in this State, subject to
such rules and regulations as may be necessary to ensure the security of such
wagering.

f.]2 An operator shall not admit
into the sports wagering lounge, or accept wagers from, any person whose name
appears on 1the
exclusion list maintained by the division pursuant to section 71 of P.L.1977, c.110
(C.5:12-71) or on1
any self-exclusion list maintained by the division 1[or the commission, and
the provisions of]pursuant to1
sections 1 and 2 of P.L.2001, c.39 (C.5:12-71.2 and C.5:12-71.3, respectively)1[, and sections]. Sections1 1 and 2 of
P.L.2002, c.89 (C.5:5-65.1 and C.5:5-65.2, respectively), shall apply to the
conduct of sports wagering under this act.

2[1g.]f.2 The holder of
a license to operate a sports pool may contract with an entity to conduct that
operation, in accordance with the regulations of the division. That entity
shall obtain a license as a casino service industry enterprise prior to the
execution of any such contract, and such license shall be issued pursuant to
the provisions of P.L.1977, c.110 (C.5:12-1 et seq.) and in accordance with the
regulations promulgated by the division2in consultation with the commission2.

2[h.]g.2If any
provision of this act, P.L. , c. (C. ) (pending before the
Legislature as this bill), or its application to any person or circumstance is
held invalid, the invalidity shall not affect other provisions or applications
of this act which can be given effect without the invalid provision or
application, and to this end the provisions of this act are severable.1

3. (New section) a. All
persons 2[engaged]employed2 directly in
wagering-related activities conducted 1[by]within1 a casino1[,]or1 a racetrack1[, or both,]1 in a sports
wagering lounge shall be licensed as 1[casino employees or]a1 casino key 1[employees]employee or
registered as a casino employee1,
as 1[appropriate] determined by the commission1 , pursuant to the
provisions of P.L.1977, c.110 (C.5:12-1 et seq.). All other employees 1[of the casino licensee,
the racetrack permit holder, or of the person or entity conducting the sports
pool]1
who are working in the sports wagering lounge 1[shall
be licensed or]may
be required to be1
registered 1,
if appropriate,1
in accordance with regulations of the division 2promulgated in consultation with
the commission2
.

b. Each 1[licensed casino,
racetrack, or both, which operates]operator of1
a sports pool shall designate one or more 1casino1 key employees who
shall be responsible for the operation of the sports pool. At least one such 1casino1 key employee shall
be on the premises whenever sports wagering is conducted.

4. (New section) Except as
otherwise provided by this act, the 1[Casino Control Commission
and the]1
division shall have the authority to regulate sports pools and the conduct of
sports wagering under this act to the same extent that the 1[commission and the]1 division 1[regulate]regulates1 other casino
games. No casino or racetrack shall be authorized to operate a sports pool
unless it has produced information, documentation, and assurances concerning
its financial background and resources, including cash reserves, that are
sufficient to demonstrate that it has the financial stability, integrity, and
responsibility to operate a sports pool. In developing rules and regulations
applicable to sports wagering, the division shall examine the regulations
implemented in other states where sports wagering is conducted and shall, as
far as practicable, adopt a similar regulatory framework. The division 2, in
consultation with commission,2
shall promulgate regulations necessary to carry out the provisions of this act,
including, but not limited to, regulations governing the:

a. amount of cash reserves
to be maintained by operators to cover winning wagers;

b. acceptance of wagers on
a series of sports events;

c. maximum wagers which
may be accepted by an operator from any one patron on any one sports event;

d. type of wagering tickets
which may be used;

e. method of issuing
tickets;

f. method of accounting to
be used by operators;

g. types of records which
shall be kept; 1[and]1

h. use of credit and
checks by patrons 1;

i. type of system for
wagering;2[and]2

j. protections for a
person placing a wager12;and

k. display of the words,
"If you or someone you know has a gambling problem and wants help, call
1-800 GAMBLER," or some comparable language approved by the division,
which language shall include the words "gambling problem" and
"call 1-800 GAMBLER," on all print, billboard, sign, online, or
broadcast advertisements of a sports pool and in every sports wagering lounge2 .

5. (New section) Each
operator shall 1[, subject to approval by
the division,]1
adopt comprehensive house rules governing sports wagering transactions with its
patrons. The rules shall specify the amounts to be paid on winning wagers and
the effect of schedule changes. The house rules, together with any other
information the division deems appropriate, shall be conspicuously displayed in
the sports wagering lounge and included in the terms and conditions of the account
wagering system, and copies shall be made readily available to patrons.

6. (New section) Whenever
a casino licensee and a racetrack permit holder enter into an agreement to
jointly establish a sports wagering lounge, and to operate and conduct sports wagering
under this act, the agreement shall specify the distribution of revenues from
the joint sports wagering operation among the parties to the agreement. The
sums received by the casino from the joint sports wagering operation shall be
considered gross revenue as specified under section 24 of P.L.1977, c.110
(C.5:12-24). The sums actually received by the horse racing permit holder from
any sports wagering operation, either jointly established with a casino or
established independently or with non-casino partners, less only the total of
all sums actually paid out as winnings to patrons, shall be subject to an 8%
tax to be collected by the division and paid to the Casino Revenue Fund created
under section 145 of P.L.1977, c.110 (C.5:12-145) to be used for the funding of
programs for senior citizens and disabled residents and to an investment
alternative tax in the same amount and for the same purposes as provided in
section 3 of P.L.1984, c.218 (C.5:12-144.1).

A percentage of the fee paid
for a license to operate a sports pool shall be deposited into the State
General Fund for appropriation by the Legislature to the Department of Health
and Senior Services to provide funds 2for
prevention, education, and treatment programs2 for compulsive
gambling 2[treatment and prevention]2 programs 2that meet the
criteria developed pursuant to section 2 of P.L.1993, c.229 (C.26:2-169), such
as those provided by the Council on Compulsive Gambling of New Jersey, and
including the development and implementation of programs that identify and
assist problem gamblers2
. The percentage shall be determined by the 1[Casino
Control Commission]division1.

7. Section 24 of P.L.1977,
c.110 (C.5:12-24) is amended to read as follows:

24. "Gross
Revenue"-- The total of all sums actually received by a casino licensee
from gaming operations, including operation of a sports pool, less only
the total of all sums actually paid out as winnings to patrons; provided,
however, that the cash equivalent value of any merchandise or thing of value
included in a jackpot or payout shall not be included in the total of all sums
paid out as winnings to patrons for purposes of determining gross revenue.
"Gross Revenue" shall not include any amount received by a casino
from casino simulcasting pursuant to the "Casino Simulcasting Act,"
P.L.1992, c.19 (C.5:12-191 et al.).

(cf: P.L.2009, c.36, s.2)

2[18. (New
section) No organization or commercial enterprise, other than a casino located
in Atlantic City or a racetrack permit holder in this State that has been
issued a permit to conduct a sports pool by means of the Internet and has
located all of its equipment used to conduct such wagering, including
computers, servers, monitoring rooms, and hubs, in Atlantic City or at an
authorized racetrack location in this State, shall knowingly make its premises
available for placing wagers at casinos or racetracks using the Internet or
advertise that its premises may be used for such purpose. An organization or
commercial enterprise that is determined by the division to have knowingly
violated the provisions of this section shall be subject to a penalty of $1,000
per player per day for making its premises available for placing wagers at
casinos or racetracks using the Internet and of $10,000 per violation for advertising
that its premises may be used for such purpose.1]2

2[19.]8.2 Section 194 of
P.L.1992, c.19 (C.5:12-194) is amended to read as follows:

194. a. (1) A casino licensee
which wishes to conduct casino simulcasting shall establish a simulcasting facility
as part of the casino hotel. The simulcasting facility may be adjacent to, but
shall not be part of, any room or location in which casino gaming is conducted
pursuant to the provisions of P.L.1977, c.110 (C.5:12-1 et seq.). The
simulcasting facility shall conform to all requirements concerning square
footage, equipment, security measures and related matters which the Division of
Gaming Enforcement shall by regulation prescribe. The space required for the
establishment of a simulcasting facility shall not reduce the space authorized
for casino gaming activities as specified in section 83 of P.L.1977, c.110
(C.5:12-83). The cost of establishing, maintaining and operating a simulcasting
facility shall be the sole responsibility of the casino licensee.

(2) Wagering on simulcast
horse races shall be conducted only in the simulcasting facility, which shall
be open and operated whenever simulcast horse races are being transmitted to
the casino hotel during permitted hours of casino operation.

(3) Any authorized game, as
defined in section 5 of P.L.1977, c.110 (C.5:12-5), other than slot machines
may be conducted in a simulcasting facility subject to the rules and
regulations of the Division of Gaming Enforcement.

(4) The security measures
for a simulcasting facility shall include the installation by the casino
licensee of a closed circuit television system according to specifications
approved by the Division of Gaming Enforcement. The Casino Control Commission
and the Division of Gaming Enforcement shall have access to the system or its
signal in accordance with regulations of the commission.

b. All persons engaged
directly in wagering-related activities conducted by a casino licensee in a
simulcasting facility, whether employed by the casino licensee or by a person
or entity conducting casino simulcasting in the simulcasting facility pursuant
to an agreement with the casino licensee and all other employees of the casino
licensee or of the person or entity conducting casino simulcasting who are
working in the simulcasting facility, shall be licensed or registered in
accordance with regulations of the Casino Control Commission or the Division of
Gaming Enforcement.

Any employee at the Atlantic
City Race Course or Garden State Park on or after June 12, 1992, who loses
employment with that racetrack as a direct result of the implementation of
casino simulcasting and who has been licensed by the New Jersey Racing
Commission for five consecutive years immediately preceding the loss of
employment shall be given first preference for employment whenever any
comparable position becomes available in any casino simulcasting facility,
provided the person is qualified pursuant to this subsection. If a casino
licensee enters into an agreement with a person or entity for the conduct of
casino simulcasting in its simulcasting facility, the agreement shall include
the requirement that such first preference in employment shall be given by the
person or entity with respect to employment in the simulcasting facility.

c. A casino licensee which
establishes a simulcasting facility and conducts casino simulcasting shall, as
a condition of continued operation of casino simulcasting, receive all live
races which are transmitted by in-State sending tracks.

d. Agreements between a
casino licensee and an in-State or out-of-State sending track for casino
simulcasting shall be in writing and shall be filed with the New Jersey Racing
Commission and with the Division of Gaming Enforcement in accordance with
section 104 of P.L.1977, c.110 (C.5:12-104).

[e. If wagering at casinos on sports events
is authorized by the voters of this State and by enabling legislation enacted
by the Legislature, and if a casino licensee conducts such wagering and casino
simulcasting, the two activities shall be conducted in the same area, in
accordance with such regulations as the Division of Gaming Enforcement shall
prescribe with respect to wagering on sports events and in accordance with this
act and such regulations as may be adopted pursuant to section 3 of this act
with respect to casino simulcasting.]1